SRG Global Ltd (ASX:SRG) Announces Record 1H FY25 Financial Results and Upgrades FY25 Guidance
Financial Performance
SRG Global Ltd (ASX:SRG) reported record financial results for the first half of FY25, achieving revenue of $619.7 million, a 21% increase from the same period last year. The company’s underlying EBITDA reached $59.0 million, marking a 31% rise, while EBIT(A) stood at $42.1 million, up 48% year-on-year. The company demonstrated excellent cash generation with an EBITDA to cash conversion rate of 120%, transitioning to a net cash position of $9.1 million from a proforma net debt of $38.2 million following the Diona acquisition. SRG Global also recorded a Work in Hand of $3.4 billion and an Opportunity Pipeline of $8.5 billion across diverse industries.
Dividend Declaration
SRG Global declared an interim fully franked dividend of 2.5 cents per share for the first half of FY25, representing a 25% increase from the same period last year. The record date for the dividend is set for Friday, 14 March 2025, with payments scheduled for Friday, 11 April 2025.
Profit Guidance Upgrade
The company has upgraded its FY25 profit guidance, setting the EBITDA range between $125 million and $128 million and EBIT(A) between $91 million and $94 million. This upgrade reflects SRG Global’s strong business fundamentals and continued growth trajectory.
Executive Comments
David Macgeorge, Managing Director, stated, “SRG Global continues to make significant progress in the execution of our strategy. Our record 1H FY25 result is underpinned by strong business fundamentals, excellent cash generation and solid operational delivery for our blue-chip client base. The transition to a truly diversified infrastructure services company is continuing to deliver results. Our 1H FY25 financial performance is clear evidence of the strength and diversity of our business and is testament to the hard work of all our people at SRG Global. I am pleased to report that the integration of our recent acquisition of Diona has gone exceptionally well with a number of excellent early wins and strong cultural and client alignment. Diona is a market leader in the water security and energy transition sectors with unparalleled self-perform capability through long-term program and asset management agreements with utility / government agencies. […] The Company has upgraded the profit guidance for FY25 to an EBITDA range of $125m to $128m and EBIT(A) range of $91m to $94m which continues the step-change growth journey of SRG Global.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.